The most delicate time to pay attention to your income is what we are living. Someone has lost their job, someone else's salary has been halved, and others have had to spend their savings to cope with the consequences of pandemics. If you want to get as little financially out of this situation as possible, you must first get rid of the most common mistakes made about money.
Designing a personal budget is boring
Okay, let's face it - it's not the most fun thing you can do. But dedicating even a few hours to creating a realistic scheme of expenses and savings will be rewarded by saving you an extraordinary stress in the future.
I don?t have time to mark every penny I spend
Designing a budget can take quite a bit of time at first, calculating all the expenses and what you want to save. But lately, this has become even easier thanks to the many applications that make your job easier.
I don?t earn enough money to design a budget
Do you think that you do not need a budget as long as you earn money for the necessary things? Wrong. Designing a budget is even more essential when your income is low, so that any money earned is spent wisely.
I am poor at math
No extraordinary skill in calculation is required as the drafting of a budget requires basic computational actions.
I don?t need a budget
Even if you are very good at money management, there are always opportunities for the better.
Once you have waived the above justifications, we move on to the second stage. What to do?
Keep notes of what you learned from the process
Financial guides always recommend that people should always note where their money goes. This can be painful so people resist doing it. It?s simple: take a white sheet of paper or cell phone and mark.
Set up an emergency fund
Unexpected things can happen so it?s a good idea to have an emergency fund for any surprises. If the situation is depressing, you need to take a few small steps:
- You can deposit at least 1% of your payment to your savings account every month.
- Keep the waste separately. By saving money for a long time, they will add up.
Don't borrow
Try to use your income for your needs and if they are not enough you can look for an extra job or you can find another way to buy them cheaper. If you consciously agree that you will only pay for the things you have money for, your life will change. Not borrowing is one of the most important steps in changing your financial life.
Source: Bible Money Matters
